Hallo, I would like to know for income tax purposes, can you claim a loss on sale of vehicle utilized for business purposes. This is a sole proprietor.
Hallo, I would like to know for income tax purposes, can you claim a loss on sale of vehicle utilized for business purposes. This is a sole proprietor.
Yes, but only if:
1. The vehicle was used for business purposes and qualifies as a depreciable asset;
2. Wear and Tear allowance was previously claimed on the business use of the vehicle;
3. The proceeds received for the sale of the vehicle is less than the calculated tax value (Not book value);
4. An apportionment must be made between the private use and business use.
http://www.sars.gov.za/AllDocs/Legal...e%20Assets.pdf
Did you like this article? Share it with your favourite social network.